A

SUMMER INTERNSHIP PROJECT REPORT

ON
“Analysis of customer’s perception towards Digitalization in
banking”

“KOTAK MAHINDRA BANK Ltd.”

Submitted to
ATMIYA Institute of Technology & Science

IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF

THE AWARD FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

under
Gujarat Technological University
UNDER THE GUIDANCE OF

Prof. NISHANT DHRUV (VAIBHAV UPADHYAY)

(HOD) (BM)
Submitted by
Rinkal k. Badrakiya
Enrollment No.: 177030592008
M.B.A – SEMESTER III

ATMIYA Institute of Technology & Science

M.B.A PROGRAMME
Affiliated to Gujarat Technological University, Ahmedabad
July 2018

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COMPANY INTERNSHIP CERTIFICATE

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COMPANY CERTIFICATE

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 PREFACE

This project provides an opportunity to demonstrate application of our

knowledge, skill and competencies required during the financial session. This project helps us to
device our skill to devote our skill to analyze the problem to suggest alternative solution and to
evaluate them.

We have worked on the topic is “ANALYSIS OF CUSTOMER

PERCEPTION ABOUT DIGITALIZATION IN BANKING.”

We have put our level best to prepare our project an error free project every
effort has been made to offer the most authenticate position with accuracy.

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 ACKNOWLEDGEMENT

We would like to express our profound gratitude to all those who

have been instrumental in the preparation of this report which has been prepared in partial
fulfillment of comprehensive project in the semester III of an MBA PROGRAMME.

At the outset, I would like to thank the Mr. KEYUR KOSHTI Sir
who has a HR of KOTAK MAHINDRA BANK LTD. for giving me the approval and also thanks
to the staff to co-operating me in my project and as well as giving me guidance in the problem
faced.

I also thanks to my project guide Prof. NISHANT DHRUV. For him

encouragement and contribution of time, counsel and materials and also thankful to my company
guide Mr. VAIBHAV UPADHYAY to give guidance about my project.

A heartfelt thanks to the many respondents surveyed whose ideas,

critical insight and suggestion have been invaluable in the preparation of this project.

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 DECLARATION

I, RINKAL K. BADRAKIYA, hereby declare that the report for “Summer Internship
Project Report” entitle “_ANALYSIS OF CUSTOMER’S PEREPTION TOWARDS
DIGITALIZATION IN BANKING” is a result of my own work and my indebtedness
to other work publications, references, if any, have been duly acknowledged.

Place: Rajkot (Signature)

Date: 22/07/2018 Rinkal k. Badrakiya

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 EXCUTIVE SUMMARY

The project provides an insight into the traditional banking system shift into digital banking. The
project focus on the what customer think about banking services after it is convert into
digitalization, what they having review about all over digital banking services.

The project also includes the banking industry in which KOTAK MAHINDRA BANK plays an
important role. The organization structure, history of the company, growth of the company,
divisions and branches, and different departments in the organization like Finance department,
Human resource department and Marketing departments are also mentioned.

The project provides an overall view on the financial standing company, products and services,
competitors of the company and sub classification of the banking into traditional and digital
banking to identify the various types of services, expectation about these services and the different
age group of the customer accessing digital banking.

The objective of the study to understand the features, concepts and evolution of digital banking /
E- banking, to understand the response, vies and understanding of the customer.

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 TABLE OF CONTENTS

Sr. No. Particulars Page No.

Preface I
Acknowledgment II
Declaration III
Executive Summary IV

1.0 Part – 1 Industry Information

1.1 About the Industry 11
1.2 World Market 16
1.3 Indian Market 19
1.4 The growth of the Industry 22

2.0 Part – II Organization Information

2.1 About Organization 25
Introduction to Functional Department
Finance
2.2 Marketing 32
HR
Production
2.3 Organization Structure 39
2.4 SWOT Analysis 40

3.0 Part – III – Primary Study

3.1 Introduction to the study 42
3.2 Literature Review 47
3.3 Background of the Study 49
3.4 Problem Statement 50
3.5 Research Objective 50

4.0 Research Methodology

4.1 Research Design 52
4.2 Source/s of Data 52
4.3 Data Collection Method 53
4.4 Population 53
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4.5 Sampling Method 53
4.6 Sampling Frame 54
4.7 Data Analysis & Interpretation 55

5.0 Findings
5.1 Conclusion 75
5.2 Limitation of the Study 76

6.0 References / Bibliography (APA Style) 76

Annexure 77

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 Part – 1
Industry
Information

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 1.1 ABOUT THE INDUSTRY

INTRODUCTION:

The Industry economy is emerging as a one of the strongest economy of the world with the GDP
growth of more than 8% every year. A strongest banking industry is important in every country
and can have a significant affect in supporting economic development through efficient financial
services. Banking sector play a vital role in growth and development of Indian economy.

Finance is the life blood of trade, commerce and industry. Now-a-days banking sector acts as the
backbone of modern business.

RBI

Schedule Non schedule

bank bank

Schedule Schedule
Commercial bank Co-operative bank
bank

Public Private Foreign Regional

sector sector banks Rural bank

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HISTORY OF BANK:
The first American banks appeared early in the 18thcentury, to provide currency to colonists who
needed a means of exchange. Originally banks only made loans and issued noted for money
deposited. Checking accounts appeared in the mid- 19th century, the first of many new bank
products and services. These now include credit cards, automatic teller machine, Now accounts,
individual retirement accounts, home equity loans and a host of other financial services.

The term bank is either derived from old Italian word Banca or from a French word banque both
means a BENCH or money exchange table. In olden days, European money lenders or money
changers used to display (show) coins of different countries in big heaps (quantity) on benches or
tables for the purpose of lending or exchanging.

DEFINITION OF BANK:
A bank is an institution which accepts deposits from the general public and extends loans to the
household, the firms and the government. Banks are those institutions which operate in money.

Indian banking regulation act 1949 section 5(1) of the banking regulations act 1949 banking
is defined as,

“Accepting for the purpose of the landing of investment of deposits of money from public
repayable on demand or other wise and withdraw able by cheques, draft order or otherwise.”

As per the oxford dictionary,

“Bank is an establishment for custody of money received from or on behalf of its customers. Its
essential duty is to Pay their drafts unit. Its profits arise from the use of money left employed
them.”

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FUCTIONS OF THE BANK

Accepting
deposits
Economic
Lending
developm
money
ent
FUNCTION
S
Risk financial
managem intermedi
ent ations
Easy
payments
&withdra
wal

CLASSIFICATION OF BANK
The banking system in India comprises commercial and cooperative banks, of which the former
accounts for more than 90% of the banking system’s assets. Besides a few foreign and Indian
private banks, the commercial banks comprise nationalized banks, the state bank of India and the
associate banks of SBI. These banks, along with regional rural banks, constitute the public sector
banking system in India.

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a) COMMERCIAL BANKS

 A Commercial bank is a type of financial institution that provides services such as

accepting deposits, making business loans, and offering basic investment products.
Commercial bank can also refer to a bank, or a division of a large bank, which more
specifically deals with deposit and loan services provided to co-operations or large sized
business- as opposed to individual members of the public business- Retail banking, or
Merchant banks. Commercial banks are of 4 types:

1) Public sector banks

2) Private sector banks

3) Foreign banks

4) Regional rural banks

1) Public Sector Banks

 Public sector banks (PSBs) are banks where a majority stake is held by a government. The
shares of these banks are listed on stoke exchange. There are a total of 27 PSBs in India (6
state bank group + 21 nationalized banks).
 In 2013, IDBI bank and in 2016 Bharatiya mahila bank were nationalized with a minimum
capital of Rs. 700 cr.
 There are the banks which is include in public sector bank,
1) State bank of India.
2) Bank of Baroda
3) Punjab National Bank
4) Canara Bank
5) Bank of India.

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2) Private sector banks
 The private sector banks in India represent part of the Indian banking sector that is made
up of both private and public sector banks. The private sector banks are banks where greater
parts of state or equally are held by the private shareholders and not by government. The
private sector banks are split into two groups by financial regulators in India, old and new.
 The old private sector banks existed prior to the nationalized in 1969 and kept their
independence because they were either too small or specialist to be included in
nationalization.
 There are banks which is include in private sector bank,
1) ICICI Bank
2) Kotak Mahindra bank
3) Axis bank
4) HDFC bank

3) Foreign sector banks

 A foreign branch bank is a type of foreign bank that is obligated to follow the regulations
of both the home and host countries. Because the foreign branch banks loan limits are based
on the parent banks capital, foreign banks can provide more loans than subsidiary banks.

4) Regional rural banks

 Regional rural banks are local level banking organizations operating in different states of
India. They have been created with a view to serve primarily the rural areas of India with
basic banking and financial services. However, RRBs may have branches set up for urban
operations and their area of operation may include urban areas too.
 RRBs perform various functions in following heads- providing banking facilities to rural
and semi- urban areas. Carrying out government operations like disbursement of wages of
MGNREGA workers, distribution of pensions, providing para- banking facilities like
locker facilities, debit and credit cards.

5) Development banks

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  Development banks are specialized financial institutions. They provide medium and long
term finance to the industrial and agriculture sector. They do term lending, investment in
securities and other activities. They even promote saving and investment habit in the
public.
 Industrial finance corporation of India and state financial corporations are the example of
development banks in India.

6) Co-operative banks

 Co-operative banking in retail and commercial banking organized on a cooperative basis.

Co-operative banking institution take deposits and lend money in most parts of the world.
 Co-operative banking as discussed here, includes retail banking carried out by credit
unions, mutual savings banks, building societies to cooperative banks.

1.2 BANKING INDUSTRY IN WORLD MARKET:

In modern time there has been huge cutbacks to the barriers of global rivalry in the banking
industry. Increases in telecommunications and other financial technologies, such as Bloomberg,
have allowed banks to spread their reach all over the world, since they no longer have to be near
customers to manage both their finances and their risk.

For banks around the world, 2018 could be a pivotal year for rushing the revolution into more
intentionally minded, digitally connected, and operationally agile institutions better equipped to
maintain market leadership in a promptly growing ecosystem.

Now-a-days, bank faces numerous challenges, including complex and diverging regulations,
legacy systems, disruptive models and technologies, new competitors, and an often impatient
customer base with ever-higher expectations. For banks’ five business lines—retail banking,
corporate banking, capital markets, payments, and wealth management—six broad subjects could
be especially critical for sustainable long-term growth.
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Customer Centricity

 True customer centricity has long been a Holy Grail for banks, which have made notable
steps in moving away from sales-dominant cultures. But clients’ beliefs are evolving at a
much faster pace, thanks in particular to the superior experiences they enjoy with other
industries. Being agile in experience delivery is as significant today as targeting the right
marketplaces and right customer segments with the right solutions.

Fin-techs and big techs

 Banks can learn from fin-tech firms, which have set a new benchmark in beyond customer
expectations in financial services. Fin-techs have redefined the direction of innovation in
banking. However, mandatory financial institutions are likely to maintain their dominance
given their scale of operations, regulatory obstacles to entry, and customers’ interest to
switch. Moreover, banks can take an expansive view of competitive benchmarking to
include the best-in-class fin-techs and big tech companies.

Regulatory recalibration

 Banks, at least in the United States, are sensing some stabilization in today’s new rule-
making, but expectations of a major regulatory pullback may be overstated. In addition,
regulatory divergence among national regulators remains a major challenge. Banks will
need to integrate regulatory compliance with strategic priorities and apply standards of due
care in managing their businesses.

Technology management

 As much as banks may wish they could, discarding legacy systems is not an
option. Modernizing the core appears to be a priority on par with investing in a portfolio
of new technologies such as block chain and robotics and cognitive automation. Banks can
aim to strike a balance between retaining competitively differentiating activities in-house
and externalizing others. In 2018, technology units within banks will likely begin

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 transforming themselves from managing platforms to orchestrating technology and
information flows across all the stakeholders.

Mitigating cyber risk

 As threats become more sophisticated and institutions grow more interconnected, funding
for cyber security continues to increase. There is also greater cooperation among banks,
counterparties, and regulators, including sharing of information and best practices. Cyber
risk is now a factor in every aspect of change and transformation. Accordingly, it’s
important to involve cybersecurity specialists in a number of business initiatives, including,
of course, the adoption of new technologies.

Reimagining the workforce

 Automation is changing the nature of work in banking, and the future workforce is going
to be more diverse than it is today, including employees who work off the as banks attract
new talent with technical expertise, existing employees will have to learn new skills to aid
the transformation into a digital organization. Banks can also consider fostering a
collaborative and inclusive culture that offers a more integrated employee experience.
balance sheet—contractors and freelancers—and robots working alongside human
employees.

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 1.3 BANKING INDUSTRY- INDIAN MARKET

As per the Reserve Bank of India (RBI), India’s banking sector is sufficiently capitalized and well-
regulated. The financial and economic conditions in the country are far superior to any other
country in the world. Indian banking industry has recently witnessed the roll out of innovative
banking models like payments and small finance banks. RBI’s new measures may go a long way
in helping the restructuring of the domestic banking industry.

The digital payments system in India has evolved the most among 25 countries with India’s
Immediate Payment Service (IMPS) being the only system at level 5 in the Faster Payments
Innovation Index (FPII).

Market Size

 The Indian banking system consists of 27 public sector banks, 22 private sector banks, 44
foreign banks, 56 regional rural banks, 1,589 urban cooperative banks and 93,550 rural
cooperative banks, in addition to cooperative credit institutions. Bank credit grew at 12.64
per cent year-on-year to Rs 85.511 lakh crore (US$ 1,326.78 billion) on May 11, 2018 from
Rs 75.91 lakh crore (US$ 1,131.47) on May 12, 2017.

Investments/developments

Key investments and developments in India’s banking industry include:

 The bank recapitalization plan by Government of India is expected to push credit growth
in the country to 15 per cent and as a result help the GDP grow by 7 per cent in FY19 ^.
 Public sector banks are lining up to raise funds via qualified institutional placements (QIP),
backed by better investor sentiment after the Government of India's bank recapitalization
plan and an upgrade in India's sovereign rating by Moody's Investor Service.
 The biggest merger deal of FY17 was in the microfinance segment of Indus and Bank
Limited and Bharat Financial Inclusion Limited of US$ 2.4 billion.

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  In May 2018, total equity funding's of microfinance sector grew at the rate of 39.88 to Rs
96.31 billion (Rs 4.49 billion) in 2017-18 from Rs 68.85 billion (US$ 1.03 billion) #.

Government Initiatives

 A new portal named 'Udyami Metra' has been launched by the Small Industries
Development Bank of India (SIDBI) with the aim of improving credit availability to Micro,
Small and Medium Enterprises' (MSMEs) in the country.

 Under the Union Budget 2018-19, the government has allocated Rs 3 trillion (US$ 46.34
billion) towards the Mudra Scheme and Rs 3,794 crore (US$ 586.04 million) towards credit
support, capital and interest subsidy to MSMEs. In May 2018, the Government of India
provided Rs 6 trillion (US$ 93.1 billion) loans to 120 million beneficiaries under Mudra
scheme.

 As on January 4, 2018, the Lok Sabha has approved recapitalization bonds worth Rs 80,000
crore (US$ 12.62 billion) for public sector banks, which will be accompanied by a series
of reforms.

The government and the regulator have undertaken several measures to strengthen the Indian
banking sector.

A two-year plan to strengthen the public sector banks through reforms and capital infusion of
Rs 2.11 lakh crore (US$ 32.5 billion), has been unveiled by the Government of India that will
enable these banks to play a much larger role in the financial system and give a boost to the
MSME sector. In this regard, the Lok Sabha has approved recapitalization bonds worth Rs
80,000 crore (US$ 12.62 billion) for public sector banks, which will be accompanied by a
series of reforms, according to GOI.

ROAD AHEAD

 Enhanced spending on infrastructure, speedy implementation of projects and continuation

of reforms are expected to provide further impetus to growth. All these factors suggest that
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 India’s banking sector is also poised for robust growth as the rapidly growing business
would turn to banks for their credit’s needs.

 Many banks, including HDFC, ICICI and AXIS are exploring the option to lunch contact
less credit and debit cards in the market shortly. The cards which use near field
communication mechanism, will allow customer to transact without having to insert or
swipe.

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 1.4 GROWTH OF THE INDUSTRY:

First Phase: 1948 – 1969

 Government took major steps in this Indian Banking Sector Reform after independence. In
1955, it nationalized Imperial Bank of India with extensive banking facilities on a large
scale especially in rural and semi-urban areas. In 1949, as many as 55 banks either went
into liquidation or went out of banking business. Banking did not receive much attention
of the policy makers and disjointed efforts were made towards the regulation of the banking
industry.

Second Phase: Nationalization 1969 – 1990

 After independence, India adopted a socialist pattern of society as its goal. This means in
non-technical language a society with wealth distributed as equitably as possible without
making the country a totalitarian state. In 1955, the Imperial Bank of India was nationalized
and its undertaking was taken over by State Bank of India. Its transformation into SBI has
been effective from July 1, 1955. there were 7 subsidiaries Banks. Their Associate Bank
was 1960.

On 19th July 1969, 14 major banks were nationalized and

taken over they were as under:

The Central Bank of India Ltd

The Bank of India Ltd
The Punjab National Bank Ltd
The Bank of Baroda Ltd
The United Commercial Bank Ltd
The Canara Bank Ltd
The United Bank of India Ltd
The Dena Bank Ltd
The Union Bank of India Ltd
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Each bank was having deposits of more than Rs. 50 crores and having among themselves aggregate
deposits of Rs. 2632 crore with 4130 branches.

Third Phase: 1991-2002 Economic Reforms

 The Indian economic development takes place in the realistic world from 1991
―Liberalization, Privatization and Globalization‖ policy. As per LPG
policy all restriction on the Indian economy was totally dissolved and the soundest phase
for the Indian banking system adopt over here.
 The Banking Sector reforms aimed at improving the policy frame work, financial health
and institutional infrastructure, there two phase of the banking reforms. Narasimham
Committee provided the blue print for the initial reforms in banking sector following the
balance of payment crisis in 1991.

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 Part – 2
Organization
Information

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 2.1 INTRODUCTION OF COMPANY PROFILE:

 Kotak Mahindra bank is an Indian private sector bank headquartered in Mumbai,

Maharashtra, India. In February 2003, Reserve bank of India (RBI) gave the license to
Kotak Mahindra finance Ltd. the group’s flagship company, to carry on banking business.

 Type : private
 Traded as : BSE:500247
NSE: KOTAKBANK
CNX Nifty constituent.
 Industry : banking, financial services
 Founded : February 2003
 Founder : Uday kotak
 Headquarters : Mumbai, Maharashtra, India.
 Key people : Shankar Acharya (chairman)
Uday kotak (executive vice chairman &MD)
 Revenue : Rs. 21,176.09 crores (US$3.2 billion) [2017]
 Operating income : Rs. 5,984.81 crores (US$890 million) [2017]
 Net income : Rs. 3,411.50 crores (US$510 million) [2017]
 Total assets : Rs. 214,589.95 crores (US$32 billion) [2017]
 No. of employee : 33,013 [2017]
 Capital ratio : 16.77%
 Website : www.kotak.com

HISTROY

 Established in 1985, the kotak Mahindra group has been one of India’s reputed
financial organizations.it was previously known as kotak Mahindra finance
limited, a non-banking financial organization

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  In February 2003, Kotak Mahindra finance ltd, the group’s flagship
company was given the license to carry on banking business by the
Reserve bank of India (RBI).

 This approval created banking history since kotak Mahindra

finance Ltd. is the first non-banking finance company in India
to convert itself in to a bank as kotak Mahindra bank ltd. the
bank has a base of 8000+ employees.

T h i s a p p r o v a l c r e a t e d b a n k i n g h i s t o r y s i n c e K o t a k Mahindra
Finance Ltd. is the first non-banking finance compan y in India to
convert itself in to a bank as Kotak Mahindra Bank Ltd. The bank has a base
of 8000+ employees.

DISTRIBUTION OF NETWORK

 Within a small span of 6 years, the bank has spread it wings in several sphere
of finance. Presently, spread in 82 cities in India, the bank caters to the needs
of its 5.9 million customer spread throughout the length and breadth of country
and even abroad.

 Mahindra bank has over 1369 branches spread acrossn689 locations and 2163
ATM in the country offering both traditional banking products and invest
men advisory services

AMALGAMATION AND MERGER

 April 1, 2015, ING Vysya Bank Ltd. has merged with Kotak Mahindra Bank Ltd. creating
a Rs. 2 trillion institution (consolidated). The merged entity Kotak Mahindra Bank Ltd.

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 will have a significant national footprint, affording it the capacity and means to serve even
better.

VISION & MISSION

 Kotak Mahindra bank’s vision is to be the most trusted global Indian financial services
brand and the most preferred financial services employer with focus on creating value.
 And its mission is to his customer must enjoy the benefits of dealing with a global Indian
brand that best understands their needs and delivers customized pragmatic solutions across
multiple platforms.

GOALS/ OBJECTIVES

a) to develop close relationship with individual households.

b) to transform ideas into visible and creative solutions.

c) to maintain our position as the premier housing finance institution in the

country.

GROWTH OF INDUSTRY

 1986: Kotak Mahindra finance limited starts the activity of bill discounting.

 1987: Kotak Mahindra finance limited enters the lease and hire purchase market.

 1990: The auto finance division is started.

 1991: The investment banking division is started. Take over RCOM. One of the India’s
largest financial marketing networks.

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 1992: Enter the funds syndication sector.

 1995: Brokerage and distribution incorporated into a separate company Kotak Investment
banking division incorporated into a separate Company.

 2001: Matrix sold to Friday Corporation, Launches insurance services.

 2003: The proposal of changing the name from ‘Kotak Mahindra finance Ltd.’ to ‘Kotak
Mahindra Bank Ltd.’ RBI has granted license to Kotak Mahindra finance Ltd to embark
on its banking business.

 2009: Kotak entered into tie up with top investment bank. It wins IT team of the year for
3rd consecutive time at the banking technology award 2008.

 2015: Kotak Mahindra bank Ltd has informed BSE that reserve bank of India has
approved the scheme of amalgamation of ING vysya bank limited with Kutak Mahindra
bank limited.

 2016: Kotak Mahindra bank launches international banking unit in GIFT city.

 2017: Kotak Mahindra bank launches Kotak remit Aadhar based instant forex Remittance
solutions- Kotak Mahindra bank launches Kotak 811 Savings account. It launches smart
banking 24*7 e-lobbies and also Launches payment a multi-wallet digital prepaid solution
for salaried Employees.

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PRODUCT AND SERVICES PROFILE

1) Accounts
2) Deposits
3) Cards
4) Loans
5) Insurance
6) Investment
7) NRI banking-
8) Self deposit locker

All these products and services let we discussed in details,

1) ACCOUNT

 Kotak Mahindra bank gives a various option to customer about accounts like,
- Savings account,
- current account,
- silk women account,
- Kotak 3-in-1 account.

a) Current account

 Minimum balance for current account is Rs. 25000 and it must be required to maintain
quarterly basis to the customers.
 Various policy like, if 10,000 kept up to 7 days then they will get 3.5% up to 14 days then
they will get 3.8% in 10,000.
 Various different types of current account like, neo current account, global trade current
account, pro CA, Astra CA, edge CA ETC.

b) Saving account

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  Minimum balance for saving account is Rs. 10,000 and it must be require maintaining
quarterly basis to the customers.
 More than 1,00,000 balance (6% p.a.)
More than 1,00,000 balance (5% p.a.)
Up to 5 crore balance (5.5% p.a.)
 There are also special savings accounts programmer designed specifically, women,
children, senior citizen, working professionals, and for the entire family.

c) Kotak 3-in-1 account

 The Kotak 3-in-1 accounts helps you enjoy the benefits of bank account, Demat account
and trading account for seamless banking and trading experience.
 The Kotak 3-in-1 account includes Kotak bank savings account + Kotak securities Demat
account + Kotak securities trading account.

2) DEPOSITS

 A deposit is a sum of money which is part of the full price of something, and which you
pay when you agree to buy it.
 Deposit is the plan of saving for the future.
 Kotak Mahindra bank gives a various option about deposits like, Regular fixed deposit,
Recurring deposit, Sweep-in facility, Senior citizen fixed deposit, Tax saving fixed deposit
etc.

3) CARDS

 Cards like credit cards, debit cards and prepaid cards are designed to suits the need of every
individual.

1) Credit cards

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  It is a payment card issued to users (cardholders) to enable the cardholder to pay a merchant
for goods and services based on cardholder promise to the card issuer to pay them for the
amounts so paid plus the other agreed charges.
 As per the cash bank, rewards, high value, low fees, commercial requirement they are
provide many other facility and option given.
 Royal signature CC, PVR gold CC, Delight platinum CC, essential platinum CC, Silk
inspire CC etc.

2) Debit card

 A debit card is a payment card that deducts money directly from a customer’s checking
account to pay for a purchase.
 In addition, debit card also called check card, offer the convenience of credit cards and
many of the same consumer protections when issued by major payment processors like
VISA or MASTER CARD.
 Kotak Mahindra bank gives a various option like, Platinum DC, Classic DC, Pay shop
more, Business class gold debit card, Privy league platinum debit card etc.

4) LOANS

 In finance, a loan is the lending of money by one or more individuals, organization, and
other entities to other individual, organization etc.
 The recipient incurs a debt, and us usually liable to pay interest on that debt until it repaid,
and also to repay the principal amount borrowed.
 Kotak Mahindra bank having ability to understand the customer need like,
Convenient payment option
Suits the need of every individual
Attractive interest rate
Simplified documents.
 Various loan products like, Home loan, Car loan, Personal loan, Education loan, Gold loan,
EMI calculate etc.

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5) INSURANCE

 Insurance means an arrangement by which a company or the state undertakes to provide a

guarantee of compensation for specified loss, damage, illness or death in return for payment
of a specified premium.
 Kotak Mahindra bank gives a various option to customer about insurance like,
- Life insurance
- Health insurance
- Atal pension yojana
- Pradhan mantri jeevan Jyoti bima yojana.
 Family protection, self-protection, get cover for health, get cover for car, avail cashless
servicing across a network of over bio garages.

6) INVESTMENT

 In general, to invest is to allocate money in the expectation of some benefit in the future.
In finance, the benefit from investment is called a return. The return may consist of capital
gains or investment income, including dividends, interest, rental income etc.
 Kotak Mahindra bank gives various option about investment like,
- Mutual fund
- Portfolio management
- Demat account
- National pension system.
 Kotak Mahindra bank having ability to understand the customer’s need like, education and
guidance, profession financial services and long term returns.

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7) SAFE DEPOSIT LOCKER

 Safe deposit locker is the place providing by bank to protect the customer documents,
jewelry, loan documents, birth certificate, savings bonds, insurance policies and other
valuable items which need safe and secure keeping can be stored in our lockers.

2.1 INTRODUCTION TO FUNCTIONAL DEPARTMENT:

HUMAN RESOURCE DEPARTMENT

Human resource management function that helps managers recruit, select, train and develop
members for an organization. HRM is concerned with the people’s dimension in organization.

In Kotak Mahindra bank, workforce of an organization is one of the most important inputs of
component. It said that people are our single most important assets. Management is personal
administration. Human capital is the greatest assets. The essential ingredient is the leadership and
direction of people.

Responsibilities of HRD

 HRD maintain daily attendance record through branch manager via E-mail.
 Take decision for approval regarding leave notes.
 HR manager takes the decision related to the recruitment, selection and training of the
candidates.
 They are taking surprising visit in every branch and collect information about employees.
 They are responsible for the monthly salary of the employees as per their attendants and
passing to the branch manager.

33
PLANNING

Planning about each and every activity at the beginning of the year. HR department from each
branch receives the requirement for the person for whole year.

RECRUITMENT

It is a process of searching for prospective candidates for the given job in the industry.as we know
it is very important for an industrial concern to have efficient and effective personal with right
quality at the right time at right place available whenever they are needed. Recruitment process
like,

Application
Shortlist Interview
pool

SELECTION

Selection is based on probation base, they are taking experienced person for 6 months’ probation
and for fresher the probation period is 1 year.

TRAINING AND DEVELOPMENT

Training aims at increasing the aptitudes, skills, and abilities of workers to perform specific job.
Kotak Mahindra bank gives a training about marketing and relevant job activities.

So, Kotak Mahindra bank maintain various HR POLICIES like, rewards to employee, strong team
building activities, HALL OF FLAME- rewarding the right behavior as per the value system,
incentive payments, employee benefits, motivation, disputes and their resolutions.

34
 MARKETING DEPARTMENT

The marketing activities of a company associated with buying and selling of the products and
services. It is including advertising, selling and delivering products to people.

Here, Kotak Mahindra bank also use the various marketing skills about growth of the bank. They
are especially targeted at that customer who are not aware about the bank’s various value added
services such as direct banking facilities.

Kotak Mahindra bank has been using analytics for taking informed marketing decision. They use
the 4 p’s of marketing mix strategy,

PRODUCT PRICE

POMOTIO
PLACE N

PRODUCT
Kotak Mahindra bank is one of the leading banks in India. It has following business verticals as
part of marketing mix like, consumer and customer banking and wealth management. They are
providing different needs of customer like silk account for woman, edge saving account, junior
account, minor account.

35
PRICE
Kotak Mahindra bank compete with Axis bank, HDFC bank, ICICI bank etc. the private sector
bank is providing the suitable interest, best customer experience for cut throat competition. It
provides 6% interest on fixed deposit.

PLACE

Kotak Mahindra bank is having in 675 areas with 2000 ATMs. It has 1200 branches across the
country. But in comparison with HDFC bank, it is less. Kotak Mahindra bank is the third largest
by market capitalization but it must also more its physical presence across global. It is also launch
a mobile phone app called Kotak Bharat banking App.

PROMOTION

Kotak Mahindra bank turned twenty-five years old in 2011, it launched ‘youthful at 25 years’
impact television commercial and print advertisement. It also created a character called Subbu who
is the voice of the brand who talks about different offered by bank through to, print, and digital.

FINANCE DEPARTMENT

Finance is the lifeblood of this business. The bank should be managing to get sufficient finance.
Financial management is utilization of funds needed in the business in a manner so that
organization goal can be achieved.

Kotak Mahindra bank is the large company and It has large cliental base so it is very difficult and
complicated to manage its finance in proper way. So, company appoint many different persons
so that there is proper maintenance of the funds of different persons is possible.

36
 FINANCIAL RATIO

Particulars March- 2017 March- 2018

Operational ratio:

Face value 5.00 5.00

Dividend per share 0.60 0.70
Growth ratio:

Operating profit per share(Rs.) 15.20 17.89

Net operating profit per share (Rs.) 96.14 103.63
Adjusted cash margin(%) 17.48 18.43
EPS growth(%) 42.33 21.25
Liquidity ratio:

Loans funds(%) 80.49 85.65

Investment deposit ratio 32.54 31.32
Credit deposit ratio 86.04 87.35
Cash/deposit(x) 0.05 0.05

Performance ratio
Return on asset(%) 1.91 2.00
Return on net worth(%) 12.35 10.89
ROCE(%) 11.98 12.95
Margin ratio:

Yield on advance 13.36 12.20

Yield on investment 8.94 7.01
Interest spread 7.78 7.21
Valuation parameters:

Price/book(x) 4.17 3.96

Net sales 9.42 10.28
37
 EPS GROWTH

50.00%
40.00%
30.00%
EPS GROWTH
20.00%
10.00%
0.00%
2016 2017 2018

NET WORTH
25000

20000

15000
NET WORTH
10000

5000

0
Category 1 Category 2 Category 3

38
 2.3 ORGANIZATION STRUCTURE:

KOTAK MAHINDRA
BANK Ltd.

BRANCH
MANAGER

Retail liability Retail liability

sales
Branch banking

Branch operation Branch sales Deputy branch

manager manager manager

Service Self-desk Account Relations Relations

officer Acquisition hip hip
officer
manager officer manager

39
 2.4 SWOT ANALYSIS

STRENGTH:
 Innovative financial products of diverse categories.
 Kotak Mahindra finance ltd. Is the first company in the Indian banking history to convert
in bank.
 Comprehensive cash management system.
 Have over 20,000 employees.
 Customer account base of over 2.7 million.

WEAKNESS:

 Lesser penetration as being late entrance.

 Low publicity and marketing as compared to other premium banks in the urban areas.

OPPORTUNITY:

 Increase in industry banking.

 Explore opportunities abroad by international banking.

THREATS:

 Economic slowdown.
 Highly competitive environment.
 Stringent banking norms.

40
 Part-3
Primary
Study

41
 3.1 INTRODUCTION OF THE STUDY

DIGITAIZATION IN BANKING
‘Digital’ is the new buzz word in the banking sector, with banks all around the globe shifting
toward digitalization. Banks of all sizes and across all regions are making huge investments in
digital initiative in order to maintain relation with customer through maximum deliver.
DIGITALIZATION leads to robust data analytics and intelligence, in which helps get closer to
customer and close in on competition.

Meaning of Digitalization

“Digitalization is the process of converting analog signals or information of any form into a digital
format that can be understood by computer system or electronic devices.”

More Americans are embracing digital banking technology each year (2014 vs 2015) 33% increase
in those using mobile Banking apps 35% increase in those using a bank’s websites or online
banking portal.

The primary steps on the digital banking journey have been largely focused on adding to the
existing offering using new, technology services to customer for increase value and accessibility.
The most noticeable examples are MOBILE APP, E- WALLET solutions, and personal finance
management (PFM) TOOLS.

42
Seven success factor for digital transformation in banking

1.
customer
experience
focus 2.
6.
inclusive
long term digital team
vision
7.
inclusive digital
culture
5. 3.
open IT platform
innovative
ecosystem
4.
new role of
branches

Kotak Mahindra bank, one of the private sector bank lenders in India, has launched a new initiative
‘Go digital campaign ‘that attempts to turn a smartphone into a bank branch. The new Kotak
Mahindra bank allows over 75 banking transactions, apart from essential transactions such as:

 Booking fixed and recurring deposit

 Bill and tax payment
 Buying insurance and mutual funds

It also provides customized, location specific promotion, deals on shopping, movies, dining, and
entertainment voucher. They current products like JIFI AND KAYPAY have been a runway
success for the bank

43
DIGITAL SERVICES OF KOTAK MAHINDRA BANK

There are the main three part of their digital services,

) WAY TO BANK

1) Mobile banking

 Now, the benefits of online banking anywhere and anytime, without the need of computer.
 Open a new zero balance 811 savings accounts in 5 minutes, and also virtual debit card for
811 customers.
 Kotak bank uses the secured HTTPS protocol for communication between the mobile client
and mobile server so transaction is secure.

2) Net banking

 Net banking is a convenient way to bank from the comfort of at home or office- a one stop
solution for all over the banking needs.
 Transfer funds online between third party accounts with Kotak bank to other via NEFT,
RTGS OR IMPS.
 Get account details, submit request, apply for IPO, pay premium are easy and effective.

3) SMS banking

 Keep track of customer bank account and credit card. It triggers SMS to complete the
transaction and even works when without internet.
 As per request, some standard charges apply after permission of customer.

44
4) USSD

 USSD is called as unstructured supplementary service data, in which real –time messaging
service. The service allows every banking customer to access services with a single number
across all bank.

5) BHIM Kotak pay

 Send or receive money instantly and securely using our virtual payment address.

B) INSTA SERVICES

There are the many INSTA service available by Kotak Mahindra bank.

 Send money abroad

 INSTA balance
 Personal finance manger
 Immediate payments
 Digi locker
 Money watch
 Mail money
 Kotak payment Gateway

C) Business & fin tech

 If a customers are a tech company with innovative solutions that can help digitalize the
economy, increase productivity, boost business.
 Kotak payment gateway, BHARAT QR solution and point of sale machine are part of this.

45
APPLICATION of Kotak Mahindra bank

Kay pay
Kotak Mahindra bank launched a Kay pay which is an easy money transfer application that enables
to transfer money to your Facebook friends, whether your friend have an account with Kutak bank
or not.

Advantages of digitalization in banking

 Improved customer experience.

 Reduction of costs for banks and customers by using ATMs, cashless transaction.
 More digital data available with banks, so they can take data driven decisions by digital
analytics.
 Number of customers will be increased for banks because of increased convenience in
banking.
 Reduce human error.
 Rural and urban gap will be eliminated.

Disadvantages of digitalization in banking

 Digitalization reduce the effort of employees and hence result in loss of jobs.
 Banks will be more vulnerable to Cyber-attacks.
 Some bank branches may cease to exist with the increasing use of online banking.

46
 3.2 LITERATURE REVIEW:

Customer perception about Digitalization in banking is one of the preferred area of research where
good amount study has been carried out. The areas of research provide diverse views of the same.

Seppo penile & Kari Pikkrainen (2014), have studied on consumer acceptance model of online
banking. Advance in electronic banking technology have created novel ways of handling daily
banking affairs, specially via the Online banking channel. The acceptance of online banking
services has been rapid in many parts of the world, in the leading e- banking countries the number
of e-banking contracts has exceeded 50%. Investigates online banking ACEPTANCE MODEL,
which is into online environment. TAM literature and e-banking studies, we develop model of
online banking acceptance among private banking customer in finland.

2. University of twente (2017) have studied on ‘Determinants of customer experience in

Digitized private banking The study AIMS to explain customer experience of private banking
clients in digital financial advisory. Digitized banking environment are often created for inward
cost-reduction and speed purpose, while customer attitude towards this digitization might not
always be positive. Sample of Dutch high –net-worth-individuals three factor will be teste to what
extent. We choose to include trustworthiness, perceived competencies and price, as factor proven
to be relevant by previous scholars. As private banking customer have a lack of willingness to
participate in studies, we specify for private banking clients at least $500,000 in net assets. we use
the survey data through email by their own investment advisor and by his suggestion clients are
ready to make this data. So three hypothesis balasubranman (2003), vaan (2017), urban (2000).
And the results show that perceived trustworthiness (+) perceived competencies (+) price
perception (-) are factors that influence the customer experience.

3. International journal of electronic finance 3 (2015) have studied on “Antecedents of online

banking satisfaction and loyalty This study endeavors to contribute to a better understanding of

47
service quality and online banking by examining the various dimensions related to creating a
satisfactory online banking experience. The authors develop a conceptual model and test it with
183 online banking users. The empirical study of model finds strong support for the links between
perceived security and perceived usefulness and perceived ease of use, reliability and PU and
PEOU, between satisfaction and finally between satisfaction and finally between satisfaction and
loyalty. The study finally provides both theoretical and practical contributions, outlines the main
limitation of the study and gives ideas for more work in this area.

4. Julian Schmidt & Paul drews (2013) have studied on” End user’s perspective on
digitalization” The current wave of digitalization has an impact of several industries, including
the financial services sector. While the current situation and arising challengers have been
analyzed from a strategic perspective and form the customer perspective, research on the internal
end user’s perspective, research on the internal end-user’s perspective is scarce so far. Based on
the online survey in the German banking industry, our study identifies several challengers for
banks in the field of internal order processing including a lack of integration among the IT systems
in use, non-realized potentials of automating the processing of work orders and lack of training for
the end-users. With our study, we add the end-user’s perspective as an additional relevant fact to
the discussion on current digitalization activities in the banking industry.

48
 3.3. BACKGROUND OF THE STUDY

Banking has been always a highly information intensive activity that relies heavily on information
technology (IT) to acquire, and deliver the information to all relevant users. IT is not only critical
in the processing information; it provides a way for the banks to differentiate their product and
services in the market. Therefore, banks find that they need to constantly innovative and update
their information to retain their demanding and discerning customer.

Banks can provide convenient, reliable and expedient services. Others have considered a more
revolutionary approach to deliver their banking services via a new medium called internet. Since
the introduction of the internet in 1969, today the internet is well on its way to become a full-
fledged delivery and distribution channel for customer oriented financial product and services
banks.

Digitalization in banking is very deeper impact on customer mind. Each and every person related
with digital banking services. But some hurdle faces by customer about digital products and
services of banks. One e- commerce adopted by banking industry is online banking or e- banking.
84% banks are offer internet banking to their customer by 2011. However, internet banking is only
effective for a bank if its customer adopted it and use it.

Here, in this project analysis of what customer think about digitalization in banking sector. They
are connecting and co-operate with new innovation. Actually, main reason of this research topic is
to which facts and things are became a hurdle in growth of economy through this small research
about banking digitalization. Because most of people are connected with banking sector.

How customer is satisfying through banking services, what are main reason they are not using his
digital services, which factors are affecting the customer and banks. What are the benefits
expecting the customer about their banking products and services?

49
 3.4 PROBLEM STATEMENT

After digitalization in banking, customers are facing some kind of problem related understanding
of new technology of banking services, operating system of applications of banks, customer’s
expectation about their banking services and polices, factor affecting dissatisfaction of customer
towards digital or online or e- banking services.

Currently prime minister Narendra Modi, taken some serious step about demonetization, they try
to change the technology, system, procedures, methods and techniques of particular area’s growth
and development. Hence, banking sector also changes his polices and techniques of products and
services for compete with world. Banks try to explain benefits of e- banking include reduction of
cost, reducing lead time and a more personalized services to customer. So, find out the problem
affect the most to customer using of digital services.

3.5 RESEARCH OBJECTIVES

There is the various objective of this research are,

 To understand the concepts, features and evolution of digital banking.

 To identify the various use of digital services.

 To study and analyze the what customer think about digital banking

 To study the shift of Kutak Mahindra bank from traditional to digital banking.

 To understand the response, views and understanding of the customer and also in digital
era, customers are co-operating with new technology or not.

 To study the challenges faced by Kutak Mahindra bank in adoption of technology in

banking.

50
 Part - 4
Research
Methodology

51
 4.1 RESEARCH DESIGN

 Research Design is the roadmap for carrying out the research activity in the project.
 Research design is master plan specifying the methods and procedures of collecting and
analyzing the needed information.
 Research design - Descriptive Research design
Descriptive Research design is a part of Conclusive Research design. A
Conclusive research focuses on the discoveries of ideas and is generally based on primary
data. It is a preliminary investigation that does have a rigid design.
 Research Type – Quantitative Research
The type of this research is quantitative. The consumers’ response has been
analyzed with appropriate statistical tool and the results have been presented with the
statistical parameters so this research is categorized quantitative research.
 Area of the study – Kotak Mahindra bank, Annand bang low
branch, Rajkot

4.2 SOURCES OF DATA

 Basically there are two sources of data:

1) Primary source of data

2) Secondary source of data

 The primary data are those which are collected afresh and for first time and thus happen to
be original in character.

 The secondary data are those which have been collected by someone else and which have
already been passed through statistical process.

 Here, in this project we have primary source of data

52
 4.3 DATA COLLECTION METHOD:

 While deciding about the method of data collection to be used for the study the researcher
should keep in mind two sources of data i.e. primary and secondary data.
 I have using primary data collection tool.
 PRIMARY data is the information that we collect specifically for the purpose of research
project. An advantage of primary data is that it is specifically tailored to our research needs.

4.4 POPULATION:

 Population is a collection of items of interest in research. The population represent a group

that you wish to generalize your research to.
 In population include each and every customer who are having bank accounts and also
employee because they have a salary account.

4.5 SAMPLING METHOD:

A population is a group of individual person, object or items from which samples are taken for
measurement

 Sampling is the act, process or techniques of selecting a suitable sample, or representative

part of a population for the purpose of determining parameters or characteristic of the whole
population.
 A sampling plan is just a method or procedures for specifying how a sample will be taken
from a population. There are the main three methods of sampling:
1) Simple Random Sampling.
2) Stratified Random Sampling

53
 3) Cluster sampling.
 Here, in this project we have used a Convenient Random Sampling method for sampling.

4.6 SAMPLING FRAME:

 Here, in this project using a stratified random sampling method

 Sample Design: Descriptive research Design
 Sample Unit: all those people who are using digital banking
services like,
- Businessman
- Employee
- Student
- Professionals
- Housewife.
 Sample size : 100 (150)

4.7 DATA COLLECTION INSTRUMENT:

 There are the various ways of data collection methods i.e.,

Focus group, survey, interviews, projective techniques etc.
 Here, I collected the data through the survey. The response rate is key survey parameter.
Survey may be administered in a variety of ways, i.e.,
- Personal interview
- Telephone interview
- Self- administered questionnaire.
 Here, I am using a questionnaire design for survey.

54
  These are basically questionnaire with a set of carefully designed questions posted to target
population. Survey can be administered by mail, telephone or by the internet. Response
rates are typically very low, so I will have to use a large sample to get sufficient response.

4.8 DATA ANALYSIS & INTERPRETATION:

1) Gender

a) Male b) Female

ANALYSIS

GENDER

male female

INTERPRETATION
From the above graph we can say that there 63% male respondents are a highly aware and 37%
female respondents are lowest aware about the digitalization in banking.

55
2) Age

a) below 18 years b) 18 – 25 years

c) 26 – 35 years d) 35 years above

age

96

39

3 10

BELOW 18 YEARS 18-25 YEARS 26-35 YEARS 35 YEARS ABOVE

INTERPRETATION-
From the above graph we can say that the 18-25 years’ age group are highly aware and below 18
years’ age group are lowest aware about digital banking services.

3) Occupation
a) Businessman
b) Housewife
c) Self- employed
d) Student
e) Professional
f) other

56
ANALYSIS

occupation
41
38

28

16
14
11

BUSINESSMAN HOUSEWIFE SELF EMPLOYED STUDENT PROFESSIONALS OTHER

INTERPRETATION
from the above graph we can say that 27.7% students who are highly knowing about
digitalization in banking sector and 7.4% housewife who are lowest aware about digitalization in
banking sector.

4) Do you have a bank account?

a) yes b) No.

ANALYSIS

bank account

Yes no

57
INTERPRETATION
from the above graph we can say that there are 97% respondents having a bank account and 3%
person are not having a bank account.

5) Which bank do you preferred?

a) HDFC bank
b) Kotak Mahindra bank
c) Axis bank
d) ICICI bank
e) other

ANALYSIS

bank accounts of respondents

OTHER 23

AXIS BANK 19

ICICI BANK 28

KOTAK MAHINDRA BANK 29

HDFC BANK 49

INTERPRETATION
from the above graph we can say that highest respondents having account in HDFC bank and
lowest respondents having an account in Kotak Mahindra bank.

58
 particulars No. of respondents ( %) percentage Priority
HDFC bank 49 33.1% 1
Kotak Mahindra bank 29 19.6% 2
ICICI bank 28 18.9% 3
other bank 23 15.5% 4
Axis bank 19 12.8% 5

6) Which of the following channel have you using for Banking services?
a) Traditional banking (branch banking)
b) Digital banking (net/mobile/set/ATM)
C) both

ANALYSIS

Using channel for banking services

77

58

13

TRADITIONAL BANKING DIGITAL BANKING BOTH

INTERPRETATION
from the above graph we can say that 52% highest respondents using traditional and modern
banking and 8.8% lowest respondent using only traditional banking services.

59
 Particulars No. of respondents (%) percentage Priority
Traditional & modern 77 52% 1
banking ( both)
Digital banking 58 39.2% 2
Traditional banking 13 8.8% 3

7) Are you using digital banking / E- banking?

a) yes b) No

ANALYSIS

know of digital banking

YES NO

INTERPRETATION
From the above graph we can say that 88.5% highest respondents are using a digital banking
services and 11.5% lowest respondents are not using a digital banking services.

60
If customer is not using a digital banking, then they attempt SECTION – A

9) Why have you never used a digital banking?

a) Do not internet at home
b) Do not trust internet services WHEN it comes to managing my money.
c) Online services don’t enable me to do what I want to do
d) I prefer to have personal human relations
e) find the process of difficult
f) other

ANALYSIS

Reason of never using onling banking

F 10

E 10

D 17

C 19

B 17

A 9

0 2 4 6 8 10 12 14 16 18 20

INTERPRETATION
From the above graph we can say that respondents are given highest priority is online services
don’t enable them to do what they want, 2nd priority is some respondents not believe in internet
services and lowest priority is some respondents not having internet at home that is reasons of
respondents they never want to use online banking services.
61
 Particulars No. of respondent (%) percentage Priority
a) online services 19 33.6% 1
don’t enable me to do
what I want to do

b) do not trust 17 29.8% 2

internet services
when its managing
my money

c) I prefer to have 17 29.8% 3

personal human
relation

d) find the process of 10 17.5% 4

difficult

e) other 10 17.5% 5

f) do not internet at 9 15.8% 6

home.

10) Do you trust banks that only operate online?

a) Completely
b) Somewhat
c) Dubious
d) Not at all

ANALYSIS

62
 Trust on online banking of respondents

30
26

17

COMPLETEY SOMEWHAT DUBIOUS NOT AT ALL

INTERPRETATION
From the above graph we can say that 33.3% respondents are trust completely, 38.5%
respondents are trust somewhat ,6.4% respondents are dubious about trust, and 21.8%
respondents are not want to say about trust about online banking.

particulars No. of respondents (%) percentage Priority

a) somewhat 30 38.5% 1
b) completely 26 33.3% 2
c) not at all 17 21.8% 3
d) dubious 5 6.4% 4

IF a customer using a digital banking then they attempt SECTION – B

11) How do you aware about E –banking / Digital banking?

a) Television
b) Internet
c) Friends and family
d) Radio
e) Newspaper and magazines.

63
ANALYSIS

Awareness about digital banking

Television Internet Friends & family Radio Newspaper & magazines

INTERPRETATION
from the above graph we can say that 60.1% highest source of awareness is internet and 1.4%
lowest source of awareness is radio.

Particulars No. of respondents (%) percentage Priority

a) internet 89 60.1% 1
b) friends and family 42 28.4% 2
c) television 13 8.8% 3
d) radio 2 1.4% 4
e) newspaper and 2 1.4% 5
magazines

12) Which of the main reason for you use a digital banking?
a) Better information
b) Simplification of process
c) 24 hour services
d) Limited time available
64
ANALYSIS

Reasons of using digital banking service

81

31
17 4

BETTER INFORMATION SIMPLIFICATION OF 24 HOUR SERVICES LIMITED TIME

PROCESS AVAILAIBLE 1

INTRPRETATION
From the above graph we can say that 54.7% highest respondents using digital service because of
24 hour services and 2.7% lowest respondents are using digital services because of limited time
available

Particulars No. of respondents (%) percentage Priority

a) 24 hours services 81 54.7% 1
b) simplification of 31 31.1% 2
process
c) better information 17 11.5% 3
d) limited time 4 2.7% 4
available

13) Which service have you using the most in digital banking?
a) Mobile banking
b) Net banking
c) ATM
d) Credit card and debit card

65
ANALYSIS

most of using service in digital banking

CREDIT CARD / DEBIT CARD 18

ATM 20

NET BANKING 60

MOBILE BANKING 50

0 10 20 30 40 50 60 70

INERPRETATION
From the above graph we can say that 40.5% highest respondents are using a net banking, 33.8%
respondents are using mobile banking, and 12.2% lowest respondents are using credit card and
debit card service of digital banking.

Particulars No. of respondents (%) percentage Priority

a) net banking 60 40.5% 1
b) mobile banking 50 33.8% 2
c) ATM 20 13.5% 3
D) credit card/ debit 18 12.2% 4
card

66
14) Which type of digital services you use the most?
a) Balance & transaction history search
b) Online fund transfer
c) Any bill payments
d) Shopping
e) Railway pass / tickets
f) Check book pass request/ stop check
g) Active debit card / ATM
H) Open FD
I) Share payments

ANALYSIS

facility using most

I 29

H 8

G 29

F 21

E 39

D 84

C 87

B 87

A 60

0 10 20 30 40 50 60 70 80 90 100

INTERPRETATION

67
From the above graph we can say that highest of respondents are using a digital service for
online fund transfer and bill payments, and lowest of respondents are using the digital services
for open FD.

Particulars No. of respondents (%) percentage Priority

a) online fund 87 1
transfer 58.8%
b) any bill payments 87 58.8% 2
c) shopping 84 56.8% 3
d) balance and 60 40.5% 4
transaction history
search
e) railway pass/ 39 26.4% 5
tickets
f) active debit card 29 19.6% 6
and share payments
g) checkbook 21 14.2 7
passbook request
g) open FD 8 5.4% 8

15) Frequency of transaction

a) 2-3 times per week
b) Once par month
c) Daily
d) Once per week

frequency of transaction

2-3 Times per week once per week daily once per month

68
INTERPRETATION
From the above we can say that 48% highest respondents are using a service in 2to 3 times in a
week and 11% lowest respondents are using using a digital services means 89 % not using daily.
Particulars No. of respondents (%) percentage Priority
a) 2-3 times per week 71 48% 1
b) once per week 35 23.6% 2
c) once per week 26 17.6% 3
d) daily 16 10.8% 4

16) Are transaction through internet secure?

a) Very much
b) somewhat
c) Little
d) Not at all

ANALYSIS

believe in transaction secure

73

44

16 8

VERY MUCH SOMEWHAT LITTLE NOT AT ALL

INTERPRETATION
From the above graph we can say that 48% respondents believe that their transaction are secure
through internet, and 17.6% lowest respondents still having confusion about security.
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 Particulars No. of respondents (%) percentage Priority
a) very much 73 51.8% 1
b) somewhat 44 31.2% 2
c) little 16 11.3% 3
d) not secure 8 5.7% 4

17) What would you encourage you to use more the online banking services?

a) Rewards
b) Simple/ clear services
c) Higher security
d) Free transaction
e) Faster than traditional banking

ANALYSIS

encourage about use of online banking

FASTER THAN TRADITIONAL BANKING 48

FREE TRANSACTION 28

HIGHER SECURITY 29

SIMPLER/ CLEAR 16

REWARDS 27

0 10 20 30 40 50 60

INTERPRETATION
From the above graph we can say that 32.4% highest respondents are encourage about digital
services because it is faster than traditional banking and second priority is higher security of
digital service.
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 Particulars No. of respondents (%) percentage Priority
a) faster than 48 32.4% 1
traditional banking
b) higher security 29 19.6% 2
c) free transaction 28 18.9% 3
d) rewards 27 18.2% 4
e) simpler / clear 16 10.8% 5
process

19) Degree of satisfaction from the services via internet comparatively to service via bank
a) Highly satisfied
b) satisfied
c) average
d) dissatisfied
e) highly dissatisfied

ANALYSIS

degree of satsfaction

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INTERPRETATION

From the above graph we can say that 54.7% are highly satisfied by digital service and second
priority is 29.7% are highly satisfied by digital services.

Particulars No. of respondents (%) percentage Priority

a) satisfied 81 55% 1
b) highly satisfied 44 30% 2
c) average 22 15% 3
d) dissatisfied 1 1% 4
e) highly dissatisfied - - -

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HYPOTHESIS:
Ho = There is no significant relationship between age and using of digital banking services.
H1 = There is no significant relationship between age and using of digital banking services.

HYPOTHESIS TESTING:
Sources fo Fe fo - fe (fo-fe)2
Below 18 years 2 73.5 -71.5 5112.25
18-25 years 96 73.5 22.5 506.25
0625-35 years 39 73.5 -34.5 1190.25
35 years above 10 73.5 -63.2 3994.24
Total 10802.94

(𝑓𝑜 − 𝑓𝑒)2
𝑐ℎ𝑖 − 𝑠𝑞𝑢𝑎𝑟𝑒 =
𝑓𝑒

= 10802.94
73.5
= 146.96

INTERPRETATION:
As per my sample size 147, an according to table value is less than 147 so, H1 is dependent and
Ho is independent.

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 Part -5
Findings and
Results

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 5.1 CONCLUSION:

 Banking in India is supportive, technically advance and vigorous.

 In the country like India, there is need for providing better services to customers.

 Banks must be concerned about the attitudes of customer with regard to acceptance of
digital banking.

 The importance of security for acceptance of internet banking is a very important issue and
it was found that people have weak understanding of internet banking and mobile banking.

 Customer are more reluctant to new technologies that might contain little risk.

 Manage the information that’s vital to the Digital banking. For banks, to create a new
sources of value, they need to understand the data that make up their customer code halos
of value each individual unique virtual identity

 Most of people are using a digital services of banks but some are not so much aware about
their precious advantages of digital banking. Hence, Banks should also try to ensure that
online banking is safe and secure for financial transaction and other services similar to
traditional banking to customer.

 Banks should also organize seminar and conference to educate the customer regarding uses
of digital banking as well as security and privacy of their accounts.

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 5.2 LIMITATIONS OF THE STUDY:

In spite of the fullest effort put in by me, this research work also possesses certain limitations.
Some of the unavoidable limitation of the present study are as follow:

 The number of customer who participated in the analysis was less then equal to 100 of
which majority were men and women who are integral part of the customer of various
banks.
 The customer is reluctant to answer the questionnaire based on the digitalization in
banking.
 The duration for the project was 45 days, so the data collected and the analysis made thereof
is not comprehensive.
 Digitalization in banking is totally technology upgradation factor, so customers are not
easily understanding the technological language.

Thus, this kind of limitations are creating a certain problem to research about digitalization in
banking.

6.0 BIBILIOGRAPHY

https://www.streebo.com/blog/role-of-digitization-in-banking-industry/

http://www.groupdiscussionideas.com/role-of-digitization-in-banking/

https://www.slideshare.net/search/slideshow?searchfrom=header&q=digital
+banking+slide+share+ps2516&ud=any&ft=all&lang=**&sort=

https://www.henrystewartpublications.com/jdb

https://economictimes.indiatimes.com/kotak-mahindra-bank-
ltd/infocompanyhistory/companyid-12161.cms
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https://www.kotak.com/en/personal-banking/accounts/savings-account.html

Wang, Y. S., Wang, Y. M., Lin, H. H., & Tang, T. I. (2003). Determinants of user acceptance of Internet
banking: an empirical study. International journal of service industry management, 14(5), 501-519.

Jun, M., & Cai, S. (2001). The key determinants of internet banking service quality: a content
analysis. International journal of bank marketing, 19(7), 276-291.

Pikkarainen, T., Pikkarainen, K., Karjaluoto, H., & Pahnila, S. (2004). Consumer acceptance of online
banking: an extension of the technology acceptance model. Internet research, 14(3), 224-235.

Schmidt, J., Drews, P., & Schirmer, I. (2016). End-users’ perspective on digitalization: A study on work
order processing in the German banking industry.

Schmidt, J., Drews, P., & Schirmer, I. (2016). End-users’ perspective on digitalization: A study on work
order processing in the German banking industry.

Schmidt, J., Drews, P., & Schirmer, I. (2016). End-users’ perspective on digitalization: A study on work
order processing in the German banking industry.

Schmidt, J., Drews, P., & Schirmer, I. (2016). End-users’ perspective on digitalization: A study on work
order processing in the German banking industry.

APPENDIX

QUESTIONNAIRE:

1) Name

2) Gender
a) male b) female
3) Age
a) below 18 years b) 18-25 years
c) 26-35 years d) 35 years above

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4) Occupation

a) businessman b) housewife

c) student d) professionals

e) other.

5) Do you have bank account?

a) yes b) no

6) which bank do you preferred?

a) HDFC Bank b) Kotak Mahindra bank

c) ICICI Bank d) AXIS bank

e) other

7) Which of the following channel have you using to banking services?

a) traditional banking ( branch banking)

b) digital banking ( mobile/ net/ ATM/ cards)

c) both

8) Are you using digital banking / E- banking?

a) yes b) no

If respondents are NOT using digital banking than attempt SECTON –A

9) Why have you been never using a digital banking services?

a) do not have a internet at home

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 b) don’t trust internet services when its managing my money

c) online service don’t enable me to do what I want to do

d) I prefer to have personal human relation.

e) find the process too difficult.

f) other reason

10) Do you trust banks that only operate online?

a) completely b) somewhat

c) little d) not at all

IF RESPONDENTS ARE USING DIGITAL BNAKING THAN ATTEPT

SECTION –B

11) How do you aware about digital banking/ E- banking?

a) television b) internet

c) friends and family d) radio

e) newspaper & magazines

12) Which one is the main reason for you use digital banking?

a) better information b) simplification of process

c) 24 hour services d) limited time available

13) Which service have you using the most in digital banking?

a) mobile banking b) net banking

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 c) ATM d) credit card & debit card

14) Which type of services mostly you use?

a) balance and transaction history search

b) online fund transfer

c) any bill payments

d) shopping

e) railway pass/tickets

f) request a check book & stop check

g) lock/ active debit card

h) open FD

i) share payments

15) frequency of transaction

a) 2-3 times per week b) once per month

c) daily d) once per week

16) Are you believe transactions are secure through internet?

a) very much b) somewhat

c) little d) no

17) What would you encourage you to use more the online banking service?

a) rewards b) simpler process

c) higher security d) free transaction

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 e) faster than traditional banking.

18) degree of satisfaction from the service via internet comparatively to service via
banks?

a) highly satisfied b) satisfied

c) average d) dissatisfied

e) highly dissatisfied.

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